Did you hear that Donald Trump is being sued over a failed resort in Mexico? He lent his name to a luxury condo-hotel project in Baja, Mexico that recently went under and has caused quite an uproar in the process. The demise of the project came after many people had invested a great deal of money, which they will not see again more than likely. You can read all about it in an article on CBS News.

Don’t take this the wrong way – I’m not reporting this story to scare anyone off of buying a new home or securing a new condo in a development that is currently under construction. In America, we have laws that protect investors and buyers to ensure their deposits are not being used for construction. It’s a shame that Mexico doesn’t have the same laws to protect buyers. If you are purchasing a vacation home in another country, this is something that you should look into. Check to make sure they have laws to protect consumers and that you will be able to get your money back if the project goes belly-up.

Many of the investors of the Mexican resort thought it was a fail-proof plan due to the endorsement of Donald Trump. He is known as a “real estate king” so how could one of his properties fail? Well, what this news story should tell you is that just because a famous name is endorsing a project does not guarantee its sucess.

As a home buyer you have to smart about your decisions and do your research. If there is something you don’t understand, ask someone to explain it to you and seek some advice. Buying a new home is supposed to be a fun and exciting time while reaching one of the goals you set forth for your life. Be smart and don’t let anyone or anything turn this dream of homeownership into a nightmare.